Beware the struggle to serve both business and society
Do companies have a responsibility to fight consumerism? We all know the answer to that: no. It is the individual consumer’s responsibility to figure out what is best. Caveat emptor, kid.
Now let me rephrase the question: do we have a responsibility to our children? Most people would say “yes.” Are these beliefs mutually exclusive?
Studies show a direct link between increased materialism in youth and a decline in self-esteem. This is not just a correlation, but appears to be a causal relationship. Low self-esteem causes increased materialism. Raised self-esteem decreases it.
I confess that I’ve always been skeptical of the idea that our country’s health—and our own, by default—is so dependent on how many things we make and how many we buy. I’m not that inspired by leaders who tell me to go shop; it just seems something south of lofty. And what does this mean vis-à-vis the before-mentioned study? Is self-esteem bad for business, and hence actually bad for our individual and national health?
In his book Predictably Irrational, Dan Ariely, professor of behavioral economics at Duke University, focuses a chapter on the difference between social and market norms. Social norms relate to our social nature and need for community. They are usually warm and fuzzy, and are the reason we help others without regard for material compensation. Market norms are the opposite. They are individualistic, and focus on cost vs. benefits. For example, Ariely found that just thinking about money makes us less socially motivated.
We all live in both worlds, and do our best to keep them separate. When we don’t, we get in trouble. You are not going to keep friends if you keep a running tally of whether they “owe” you or not. And your business will suffer if you generously give everything away, and don’t pay attention to the bottom line.
The scenarios I outlined at the start illustrate the difference between these norms. The first paragraph exemplifies market-norm thinking; the following ones show social-norm decision-making. This was President Bush’s fundamental error when he told us to go shopping in times of crisis. Just when we needed to build community, he was focused on the market.
Enter Corporate Social Responsibility (CSR): the philosophy that a company should take social responsibilities into account when making business decisions. Personally, I am a fan of acting in a socially responsible manner but not labeling oneself as such. I figure that, in the end, you are either putting your principles into practice or not, and if you aren’t, you will be outed before long. “Greenwashing”, or the attempt to make a company look more eco-friendly than it is, is a good example of this.
When you find yourself torn between the bottom line and the greater good, advice from outsiders is usually helpful in resolving the dilemma or in generating new ideas. My recommendation is to have socially aware consultants who can offer a more objective sounding board for your marketing ideas. Don’t rely solely on internal people; by definition, they are concerned with keeping their jobs and doing what is best for the business. And that’s an excellent thing, but it may blind you to the greater community’s needs.
Another idea is what our creative director Todd Verlander jokingly calls “guilt offsetting,” or buying your way onto Santa’s good list through good deeds. This includes carbon offsetting, recycling, and getting an office energy audit. Get buy-in from the top of your company, and get involvement at all levels. Make your commitment to CSR explicit to employees.
You can also partner with a nonprofit, or nonprofits, that share your vision. For example, an fine art paper company supports a local museum, or an engineering firm provides a scholarship to a community college. But also pay attention to the partner’s reputation and track record. From experience, I recommend pairing with a well-run organization whose mission may vary from your own rather than one whose mission may warm your heart but is ineffective. Help the successful to be more so.
Most importantly, approach CSR as a win-win situation; otherwise, it will feel like a burden and you will drop it.
Caveat, marketers.
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Social vs. Market Norms
Beware the struggle to serve both business and society
Now let me rephrase the question: do we have a responsibility to our children? Most people would say “yes.” Are these beliefs mutually exclusive?
Studies show a direct link between increased materialism in youth and a decline in self-esteem. This is not just a correlation, but appears to be a causal relationship. Low self-esteem causes increased materialism. Raised self-esteem decreases it.
I confess that I’ve always been skeptical of the idea that our country’s health—and our own, by default—is so dependent on how many things we make and how many we buy. I’m not that inspired by leaders who tell me to go shop; it just seems something south of lofty. And what does this mean vis-à-vis the before-mentioned study? Is self-esteem bad for business, and hence actually bad for our individual and national health?
In his book Predictably Irrational, Dan Ariely, professor of behavioral economics at Duke University, focuses a chapter on the difference between social and market norms. Social norms relate to our social nature and need for community. They are usually warm and fuzzy, and are the reason we help others without regard for material compensation. Market norms are the opposite. They are individualistic, and focus on cost vs. benefits. For example, Ariely found that just thinking about money makes us less socially motivated.
We all live in both worlds, and do our best to keep them separate. When we don’t, we get in trouble. You are not going to keep friends if you keep a running tally of whether they “owe” you or not. And your business will suffer if you generously give everything away, and don’t pay attention to the bottom line.
The scenarios I outlined at the start illustrate the difference between these norms. The first paragraph exemplifies market-norm thinking; the following ones show social-norm decision-making. This was President Bush’s fundamental error when he told us to go shopping in times of crisis. Just when we needed to build community, he was focused on the market.
Enter Corporate Social Responsibility (CSR): the philosophy that a company should take social responsibilities into account when making business decisions. Personally, I am a fan of acting in a socially responsible manner but not labeling oneself as such. I figure that, in the end, you are either putting your principles into practice or not, and if you aren’t, you will be outed before long. “Greenwashing”, or the attempt to make a company look more eco-friendly than it is, is a good example of this.
When you find yourself torn between the bottom line and the greater good, advice from outsiders is usually helpful in resolving the dilemma or in generating new ideas. My recommendation is to have socially aware consultants who can offer a more objective sounding board for your marketing ideas. Don’t rely solely on internal people; by definition, they are concerned with keeping their jobs and doing what is best for the business. And that’s an excellent thing, but it may blind you to the greater community’s needs.
Another idea is what our creative director Todd Verlander jokingly calls “guilt offsetting,” or buying your way onto Santa’s good list through good deeds. This includes carbon offsetting, recycling, and getting an office energy audit. Get buy-in from the top of your company, and get involvement at all levels. Make your commitment to CSR explicit to employees.
You can also partner with a nonprofit, or nonprofits, that share your vision. For example, an fine art paper company supports a local museum, or an engineering firm provides a scholarship to a community college. But also pay attention to the partner’s reputation and track record. From experience, I recommend pairing with a well-run organization whose mission may vary from your own rather than one whose mission may warm your heart but is ineffective. Help the successful to be more so.
Most importantly, approach CSR as a win-win situation; otherwise, it will feel like a burden and you will drop it.
Caveat, marketers.